Energous Corp (WATT)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 revenue was approximately $1.0M, up 184% quarter-over-quarter and ~21x year-over-year, marking the company’s highest quarterly revenue since 2016; gross margin expanded to 35% from 27% in Q1 as manufacturing yields and volumes improved .
• GAAP net loss improved to $(2.8)M ($(0.08) per share), the company’s lowest quarterly net loss in a decade; GAAP operating expenses fell 32% YoY to $3.1M .
• Cash and cash equivalents were ~$8.7M at June 30; confirmed order backlog was ~$4M as of July 28, expected to ship in 2025, supporting continued revenue growth into 2H25 .
• S&P Global Wall Street consensus for Q2 2025 (revenue, EPS) was not available; beat/miss cannot be determined (values retrieved from S&P Global).*

What Went Well and What Went Wrong

• What Went Well

  • Demonstrated operating leverage: revenue surged to ~$1.0M while gross margin expanded to 35% (from negative in Q2’24 and 27% in Q1’25), driven by higher volumes, improved yields, and operational optimization .
  • Cost discipline: GAAP OpEx down 32% YoY to $3.1M; non-GAAP OpEx fell ~37% YoY to ~$3.0M; GAAP net loss improved 35% YoY to $(2.8)M—the lowest quarterly net loss in 10 years .
  • Commercial momentum: ~$4M backlog expected to ship in 2025; zero product returns since PowerBridge Pro commercial production began; new products (e‑Sense tag; AI-driven PowerBridgeMOD and PowerBridge PRO+) broaden platform and use cases .

• What Went Wrong

  • Scale still early: despite rapid growth, revenue base remains sub-$1.0M for the quarter and the company remains loss-making (Q2 GAAP net loss $(2.8)M) .
  • Continued reliance on external funding: raised $15.8M net under the ATM in 1H25 to support operations and growth; dilution risk remains a consideration .
  • No formal numerical guidance provided; visibility framed via order backlog and deployment pipeline rather than quantified top-line or margin outlook .

Financial Results

KPIs and balance sheet highlights:

• Cash & Cash Equivalents (6/30/25): $8.662M
• YTD Revenue (1H25): $1.318M
• Backlog (as of 7/28/25): ~$4M, expected to ship in 2025
• Zero product returns since PowerBridge Pro commercial production began
• Non-GAAP OpEx (Q2 2025): ~$2.952M
• H1 2025 patents granted: 4 (network security, e‑Sense location tracking, in‑band communications)

Guidance Changes

Note: No formal quantitative guidance ranges were provided in Q2 materials; management emphasized backlog execution, margin enhancement, and cost discipline .

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was available in the document set. The themes below synthesize disclosures from Q4’24, Q1’25, and Q2’25 press/8‑K materials.

Management Commentary

• “We believe our significant revenue growth year over year and quarter over quarter demonstrates increasing demand for Energous’ wireless power network technology to serve as the backbone of enterprise infrastructure modernization projects and also underscores the value proposition of the solutions we offer to our customers.” — Mallorie Burak, CEO & CFO .
• “Gross margin increased by 200 percentage points… to 35%… This improvement… was primarily driven by increased manufacturing yields, higher volumes, and strategic efforts made to optimize our operations.” .
• “As ambient IoT technology becomes increasingly accessible… Enterprises… are choosing our wireless power solutions to enable fully wireless track‑and‑trace systems.” — Mallorie Burak .
• On platform expansion: introduction of battery‑free e‑Sense tag to complete an end‑to‑end ambient IoT platform with transmitters and e‑Compass cloud .
• Preliminary context: “Our performance in the first half of 2025 marks a true inflection point… We’ve… strengthened our balance sheet… accelerated product innovation… driving top‑line growth and closing the gap to profitability.” — Mallorie Burak .

Q&A Highlights

• Not available: no Q2 2025 earnings call transcript was found in the document set.

Estimates Context

• S&P Global consensus estimates for Q2 2025 (revenue, EPS) were not available; SPGI shows actual revenue but no consensus entries, so we cannot determine beats/misses for the quarter (values retrieved from S&P Global).*

Implication: In the absence of published consensus, buyside will anchor on the magnitude of QoQ/YoY acceleration, margin inflection, backlog conversion, and liquidity runway disclosed by management .

Key Takeaways for Investors

• Execution inflection: Highest revenue since 2016 with strong sequential and YoY growth; early evidence of operating leverage via gross margin expansion to 35% and lower OpEx .
• Quality and reliability: Zero product returns since PowerBridge Pro commercialization underscores product maturity for scaled deployments .
• Pipeline visibility: ~$4M backlog expected to ship in 2025 provides near‑term revenue support while broader enterprise deployments ramp .
• Platform breadth: Launch of e‑Sense (battery‑free sensor) and AI‑driven transmitter variants (PowerBridgeMOD/PRO+) deepens an end‑to‑end ambient IoT offering and expands use cases .
• Liquidity/capital: $8.7M cash at quarter end and $15.8M net ATM proceeds YTD extend runway, but continued equity financing is a consideration for dilution risk .
• Absent guidance/consensus: Without numerical guidance and no SPGI consensus, focus shifts to backlog conversion cadence, margin trajectory, and enterprise deal flow as primary stock catalysts .
• Near‑term setup: Watch for 2H25 shipment timing vs backlog, additional large‑retail/industrial wins, and further gross margin improvements from volume and manufacturing efficiencies .

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Additional detail

KPIs

Product and innovation highlights

• Battery‑free e‑Sense tag and e‑Compass cloud extend end‑to‑end ambient IoT platform .
• AI‑driven PowerBridgeMOD and PowerBridge PRO+ with integrated gateway designed to optimize visibility and reduce total cost of ownership; commercial production expected to commence in Q4 2025 .

Prior quarter context (for trend)

• Q1 2025: Revenue $0.343M; gross profit ~$0.093M; GAAP OpEx $3.704M; GAAP net loss $(3.366)M; cash $10.085M .
• Q4 2024: Revenue $0.4M; 2024 non‑GAAP OpEx $16.2M (down ~19% YoY); 2024 cash $1.353M (cash subsequently increased to ~$11.7M by 2/25/25) .

Footnote:

• Values retrieved from S&P Global.